Wednesday, August 10, 2016

7th Pay Commission: Enhanced Pay With Arrears To Be Paid In This Month

New Delhi: The government is going to pay of salaries to its 4.8 million central government employees according to 7th Pay Commission recommendations in this month along with seven months’ arrears.

Finance Minister Arun Jaitley earlier had “congratulated” central government employees after the Union Cabinet accorded its approval to the 7th pay commission recommendations.

The payments will be made following the Finance ministry Office Memorandum No.1-5/2016-IC dated July 29 and Corrigendum dated August 1.

The government’s overall arrears payout will be lower because of only seven months arrears this time, compared to the previous sixth pay commission, which came in late.

The sixth pay commission report was submitted in 2008, with the higher salaries coming into effect retrospectively from January 1, 2006.

As per the notification and resolution, the central government employees will receive an average 14.27 per cent hike in basic pay effective from January 1, 2016.

The minimum pay in central government with effect from January 1, 2016 will now be Rs 18,000 per month, up form Rs 7,000 per month. At the highest level of Cabinet Secretary, the salary would go up from Rs 90,000 a month to Rs 2.5 lakh.

In November 2015, the cabinet approved the new scale for central government employees and pensioners after considering reports of the 7th Pay Commission, led by former Justice A K Mathur . The cabinet went for ditto, the 7th pay commission recommendations.

People familiar with the developments told the Sen Times Monday that increasing pay and pension of central government employees and pensioners is estimated to cost the exchequer Rs 1.02 lakh crore annually. However, by deferring the allowance hike proposed by the seventh pay commission, the burden to the exchequer is reduced by a 17 per cent at Rs 84,933 crore as the allowances will be paid after getting report from the Finance Secretary Committee, they added.

According to the notification, the central government employees will have to get a very little arrears after the deduction of income tax and NPS contribution.

However, Finance Minister Arun Jaitley earlier had “congratulated” central government employees after the Union Cabinet accorded its approval to the 7th pay commission recommendations.